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Yellen’s painted into a corner

The globe cannot take a US recovery and the stronger dollar that would bring. The unsustainable debt loads — both private and governmental — in China and Japan cannot be managed with zero revenue growth and an escalating balance on dollar strength.

Capitulation and repudiation of debt is beginning.

So at 6:30 am EST Friday US futures are as follows: Dow -272 or -1.68% and WTI crude: $29.57 or -5.2%. I put these numbers out as a point of comparison to the 9am levels, when US market intervention may take hold.

So if the Fed hints on Thursday that a Jan. rate hike is off the table and US markets soar only to give it up and more the next day, what’s Janet Yellen to do?

Can’t cut, although she should. Can’t raise, although she has to for her creditability. Stand pat and watch the Dow hit 10k.